Method and apparatus for facilitating the sale of subscriptions to periodicals

ABSTRACT

A POS terminal receives a signal that indicates an item, for example, via a bar code scanner. The POS terminal ascertains whether the item is associated with an offer for a rebate. If so, a code is generated and output to the customer, such as on a printed receipt. The code is associated with an offer for a rebate in exchange for establishing a subscription to a periodical. If the customer subscribes to a required periodical, he will be credited the amount he paid for the item. Subsequently, the customer requests a subscription to a periodical from a subscription fulfillment house, and provides his code in conjunction with the request. If the code is valid, the customer is provided with a rebate. The rebate may be provided directly by the subscription fulfillment house (e.g. a credit to a credit card account) or may be provided by a merchant (e.g. a discount on a future purchase).

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application is a continuation of U.S. patent applicationSer. No. 11/611,931 filed Dec. 18, 2006 entitled “METHOD AND APPARATUSFOR FACILITATING THE SALE OF SUBSCRIPTIONS TO PERIODICALS”, filed Dec.18, 2006, which is a continuation of U.S. patent application Ser. No.09/260,437 filed Mar. 2, 1999 and issued as U.S. Pat. No. 7,162,434 onJan. 9, 2007.

Each of the above-referenced applications is incorporated by referenceherein in its entirety.

FIELD OF THE INVENTION

The present invention relates to methods and apparatus for facilitatingthe sale of subscriptions to periodicals.

BACKGROUND OF THE INVENTION

Each year over one billion magazine issues are sold through over 50,000retail stores in the United States. The “cover price” (cost of an issue)at a typical retail store (“retailer”) is often two or three timeshigher than the pro rata price of an issue provided in connection with asubscription to the periodical. Despite the higher prices, consumers arewilling to purchase issues from retail stores because of convenience andtimeliness.

Some consumers decide to forgo the advantages of issues purchased atretail stores in favor of subscriptions to periodicals, which are morecost effective. However, many inconveniences deter purchasers of singleissues at retail stores from subscribing to the periodicals. Forexample, if a customer purchases a subscription, the retailer isdeprived of the revenue he might have gained if the customer were topurchase the issues of the periodical. Furthermore, the customer cannotpay for a subscription with cash. The consumer must either mail a checkor make a telephone call to initiate a subscription and provide a creditcard number.

Retailers are burdened by the need to manage issues of periodicals.Retailers receive issues from a fulfillment house. Typically, theretailer is unable to sell approximately half of the issues, and mustreturn them at substantial cost to the retailer. It is very difficult topredict which issues will sell and the quantities thereof. If too manyissues are ordered, they must be returned. If too few issues areordered, the retailer does not realize the profit it could haverealized. Consequently, it is difficult or impossible to accuratelystock the correct quantities of various issues.

It would be advantageous to provide a method and apparatus forfacilitating the sale of subscriptions to periodicals.

SUMMARY OF THE INVENTION

It is an object of the present invention to provide a method andapparatus for facilitating the sale of subscriptions to periodicals.

In accordance with the present invention, a POS terminal receives asignal that indicates an item, for example, via a bar code scanner. ThePOS terminal ascertains whether the item is associated with an offer fora rebate. If so, a code is generated and output to the customer, such ason a printed receipt. The code is associated with an offer for a rebatein exchange for establishing a subscription to a periodical. If thecustomer subscribes to a required periodical, he will be credited theamount he paid for the item.

Subsequently, the customer requests a subscription to a periodical froma subscription fulfillment house, and provides his code in conjunctionwith the request. If the code is valid, the customer is provided with arebate. The rebate may be provided directly by the subscriptionfulfillment house (e.g. a credit to a credit card account) or may beprovided by a merchant (e.g. a discount on a future purchase).

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic illustration of an apparatus for facilitating thesale of subscriptions to periodicals in accordance with the presentinvention.

FIG. 2A is a schematic illustration of an embodiment of a POS terminalof the apparatus of FIG. 1.

FIG. 2B is a schematic illustration of another embodiment of a POSterminal of the apparatus of FIG. 1.

FIG. 2C is a schematic illustration of a store server of the apparatusof FIG. 1.

FIG. 3 is a schematic illustration of a subscription fulfillment houseserver of the apparatus of FIG. 1.

FIG. 4 is a tabular representation of an inventory database of the POSterminal of FIGS. 2A and 2B.

FIG. 5 is a tabular representation of a merchant database of thesubscription fulfillment house server of FIG. 3.

FIG. 6 is a tabular representation of a rebate rule database of thesubscription fulfillment house server of FIG. 3.

FIG. 7 is a tabular representation of an embodiment of a code databaseof the subscription fulfillment house server of FIG. 3.

FIG. 8 is a tabular representation of another embodiment of the codedatabase of the subscription fulfillment house server of FIG. 3.

FIG. 9 is a front plan view of a coupon printed in accordance with thepresent invention.

FIG. 10 is a tabular representation of charges and credits made to anexemplary credit card account.

FIG. 11 is a flow chart illustrating an embodiment of a method forfacilitating the sale of a subscription to a periodical in accordancewith the present invention.

FIG. 12 is a flow chart illustrating an embodiment of a method forproviding an offer for a rebate on an item in exchange for subscribingto a periodical.

FIG. 13 is a diagram illustrating a method for generating a code.

FIG. 14 is a flow chart illustrating an embodiment of a method forestablishing a subscription and obtaining a rebate.

FIG. 15 is a flow chart illustrating an embodiment of a method forestablishing a subscription and establishing a rebate to be provided bya merchant.

FIG. 16 is a flow chart illustrating an embodiment of a method forproviding a rebate at a point of sale terminal.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Applicants have recognized that a customer purchasing an issue of aperiodical may be provided with an incentive to subsequently purchase asubscription. In exchange for subscribing to the periodical, thecustomer receives a rebate. In one embodiment, the cost of the issue ispaid to the customer. The subscription fulfillment house that processesthe subscription request may fund the rebate as payment for acquiring anew subscriber. In one embodiment, the subscription fulfillment housepays the customer the rebate amount directly. In another embodiment, thesubscription fulfillment house arranges for a merchant to pay thecustomer the rebate amount. The purchase of other items besides issuesof periodicals may likewise prompt an offer to the customer thatprovides an incentive to purchase a subscription.

Referring to FIG. 1, an apparatus 100 includes a store server 110 thatis in communication with point of sale (POS) terminals 115, 120 and 125and with a subscription fulfillment house server 130. The store server110 may communicate with the POS terminals 115, 120 and 125 via anappropriate network such as a local area network (LAN). The POSterminals 115, 120 and 125 may be, for example, the NCR 7454manufactured by NCR Corporation or the IBM 4683 manufactured byInternational Business Machines. The POS terminals 115, 120 and 125perform such processes as calculating the total price of a purchase(goods or services) and calculating the amount of change due to acustomer. The POS terminals 115, 120 and 125 may furthermore trackpurchases made and adjust databases of inventory accordingly. Althoughthree POS terminals are shown in FIG. 1, any number of POS terminals maybe in communication with the store server 110 without departing from thespirit and scope of the present invention. Each of the POS terminals115, 120 and 125 may be located in the same store, in different storesof a chain of stores, or in other locations.

The store server 110 directs the operation of, stores data from andtransmits data to the POS terminals 115, 120 and 125. The store server110 may itself be a POS terminal, as described herein, or may be anothercomputing device that can communicate with one or more POS terminals.The store server 110 may perform many of the processes described below,especially those processes that are performed for more than one POSterminal. The store server 110 may furthermore store data, such as aninventory database, that is to be shared by the POS terminals 115, 120and 125. Similarly, data described herein as stored on the store server110 may be stored on the POS terminals 115, 120 and 125, as appropriate.There may be any number of store servers in communication with thesubscription fulfillment house server 130. Each store server wouldtypically be associated with a different merchant.

The store server 110 may communicate with the subscription fulfillmenthouse server 130 via an appropriate network such as the Internet or aproprietary wide area network (WAN). The subscription fulfillment houseserver 130 may be a computing device, such as one based on the Intel®Pentium® microprocessor, that processes requests for subscriptions onbehalf of the subscription fulfillment house. Possible hardwareconfigurations for the subscription fulfillment house server 130 will beapparent to those skilled in the art.

FIG. 2A illustrates an embodiment of a POS terminal 200 that isdescriptive of any or all of the POS terminals 115, 120 and 125 (FIG.1). The POS terminal 200 comprises a processor 202, such as one or morePentium® microprocessors. The processor 202 is in communication with adata storage device 204. The data storage device 204 comprises anappropriate combination of magnetic, optical and/or semiconductormemory, and may include Random Access Memory (RAM), Read-Only Memory(ROM) and/or a hard disk. The processor 202 and the storage device 204may each be (i) located entirely within a single computer or othercomputing device; (ii) connected to each other by a remote communicationmedium, such as a serial port cable, telephone line or radio frequencytransceiver; or (iii) a combination thereof. In one embodiment, the POSterminal 200 may comprise one or more computers that are connected to aremote server computer for maintaining databases.

The processor 202 may be in communication with one or more inputdevices. An optical bar code scanner 206 is operative to read bar codesand transmit signals indicative of those bar codes to the processor 202.As is known in the art, a bar code is a series of vertical bars ofvarying widths printed on consumer product packages and other retailitems and used to allow a computer to identify those products. Theoptical bar code scanner 206, such as those manufactured by symboltechnologies, is an optical device that uses a laser beam to read andinterpret bar codes. A keypad 208 is operative to transmit inputsignals, such as signals indicative of actuated keys, to the processor202. A card reader 210 is operative to read cards such as magnetic stripcards that have magnetizable strips or surfaces on which data may berecorded. The card reader in turn transmits signals representing suchread data to the processor 202.

The processor 202 may likewise be in communication with one or moreoutput devices. A printer 212 is operative to register indicia on paperor other material, thereby printing receipts and coupons, as controlledby the processor 202. A display device 214 comprises a video monitor orother device operative to display at least alphanumeric characters tothe customer and/or cashier as directed by the processor 202.

Many types of input devices and output devices are known to thoseskilled in the art and need not be described in detail herein.

The data storage device 204 stores a program 220 for controlling theprocessor 202. The processor 202 performs instructions of the program220 and thereby operates in accordance with the present invention,particularly in accordance with the methods described in detail herein.The program 220 furthermore includes program elements that may benecessary, such as an operating system and “device drivers”, forallowing the processor 202 to interface with computer peripheral devicessuch as input devices and output devices. Appropriate device drivers andother necessary program elements are known to those skilled in the artand need not be described in detail herein.

The storage device 204 also stores an inventory database 222. Theinventory database 222 is described in detail below and depicted withexemplary entries in the accompanying figures. As will be understood bythose skilled in the art, the schematic illustrations and accompanyingdescriptions of the databases presented herein are exemplaryarrangements for stored representations of information. A number ofother arrangements may be employed besides those suggested by the tablesshown. Similarly, the illustrated entries of the databases representexemplary information, and those skilled in the art will understand thatthe number and content of the entries can be different from thoseillustrated herein.

FIG. 2B illustrates another embodiment of a POS terminal 250 that isdescriptive of any or all of the POS terminals 115, 120 and 125 (FIG.1). The POS terminal 250 comprises a control device 252 that is incommunication via a communication medium 254 (e.g. a serial port cable)with a system 256 for printing coupons. The control device 252 comprisesa processor 260 in communication with a keypad 262, a card reader 264, abar code scanner 266 and a display device 268. The system 256 forprinting coupons comprises a processor 270 in communication with astorage device 272 and a printer 274. In this embodiment the controldevice 252 may be a cash register, and the system 256 may be anelectronic device for printing coupons in accordance with data receivedfrom the cash register. For example, the control device 252 may be IBM4690 running IBM SUREPOS ACE software and the system 256 may be aLexmark printer embedded with Catalina coupon software. Otherconfigurations of POS terminals will be understood by those skilled inthe art.

FIG. 2C illustrates an embodiment of the store server 110 (FIG. 1). Thestore server 110 comprises a processor 282, such as one or more Pentium®microprocessors. The processor 282 is in communication with a datastorage device 284. The data storage device 284 comprises an appropriatecombination of magnetic, optical and/or semiconductor memory, and mayinclude Random Access Memory (RAM), Read-Only Memory (ROM) and/or a harddisk. The processor 282 and the storage device 284 may each be (i)located entirely within a single computer or other computing device;(ii) connected to each other by a remote communication medium such as aserial port cable, telephone line or radio frequency transceiver; or(iii) a combination thereof. In one embodiment the store server 110 maycomprise one or more computers that are connected to a remote servercomputer for maintaining databases.

The data storage device 284 stores a program 286 for controlling theprocessor 282. The processor 282 performs instructions of the program286 and thereby operates in accordance with the present invention,particularly in accordance with the methods described in detail herein.The program 286 furthermore includes program elements that may benecessary such as an operating system and “device drivers” for allowingthe processor 282 to interface with computer peripheral devices such asinput devices and output devices. Appropriate device drivers and othernecessary program elements are known to those skilled in the art andneed not be described in detail herein.

The storage device 284 also stores an inventory database 288. Theinventory database 288 may be a “master copy” that is copied to each POSterminal in communication with the store server 110. Thus, inventoryinformation stored by the store server 110 may be readily disseminatedto each POS terminal. In another embodiment, the store server alone maymaintain the inventory information in the inventory database 288, whileeach POS terminal would request appropriate inventory information fromthe store server 110 without actually having a local copy of theinventory database.

FIG. 3 illustrates an embodiment of the subscription fulfillment houseserver 130 (FIG. 1). The subscription fulfillment house server 130comprises a processor 302, such as one or more Pentium® microprocessors.The processor 302 is in communication with a data storage device 304.The data storage device 304 comprises an appropriate combination ofmagnetic, optical and/or semiconductor memory, and may include RandomAccess Memory (RAM), Read-Only Memory (ROM) and/or a hard disk. Theprocessor 302 and the storage device 304 may each be (i) locatedentirely within a single computer or other computing device; (ii)connected to each other by a remote communication medium such as aserial port cable, telephone line or radio frequency transceiver; or(iii) a combination thereof. In one embodiment, the subscriptionfulfillment house server 130 may comprise one or more computers that areconnected to a remote server computer for maintaining databases.

The processor 302 may be in communication with one or more input devices306 such as a keypad operative to transmit input signals to theprocessor 302. Similarly, the processor 302 may be in communication withone or more output devices 308 such as a display device that iscontrolled by the processor 302.

The data storage device 304 stores a program 320 for controlling theprocessor 302. The processor 302 performs instructions of the program320, and thereby operates in accordance with the present invention, andparticularly in accordance with the methods described in detail herein.The program 320 furthermore includes program elements that may benecessary such as an operating system and “device drivers” for allowingthe processor 302 to interface with computer peripheral devices such asinput devices and output devices. Appropriate device drivers and othernecessary program elements are known to those skilled in the art andneed not be described in detail herein.

The storage device 304 also stores (i) a merchant database 322, (ii) arebate rule database 324, and (iii) a code database 326. Informationstored in the databases 322, 324 and 326 may be made available to thestore server 110 and/or the POS terminals 115, 120 and 125.Alternatively, the databases 322, 324 and 326 may be stored on the storeserver 110. The databases 322, 324 and 326 are described in detail belowand depicted with exemplary entries in the accompanying figures. As willbe understood by those skilled in the art, the schematic illustrationsand accompanying descriptions of the databases presented herein areexemplary arrangements for stored representations of information. Anumber of other arrangements may be employed besides those suggested bythe tables shown. Similarly, the illustrated entries of the databasesrepresent exemplary information, and those skilled in the art willunderstand that the number and content of the entries can be differentfrom those illustrated herein.

Referring to FIG. 4, a table 400 represents an embodiment of theinventory database 222 (FIG. 2A). The table 400 includes entries 402,404 and 406, each defining an item of inventory that a merchant offersfor sale. Typically, each of a plurality of merchants will have its owninventory database. Those skilled in the art will understand that thetable 400 may include any number of entries. The table 400 also definesfields for each of the entries 402, 404 and 406. The fields specify (i)an item identifier 420 that uniquely identifies the item, (ii) adescription 422 of the item, and (iii) a price 424 of the item.

Referring to FIG. 5, a table 500 represents an embodiment of themerchant database 322 (FIG. 3). The table 500 includes entries 502, 504,506 and 508, each defining a merchant that is in communication with thesubscription fulfillment house server 130. Those skilled in the art willunderstand that the table 500 may include any number of entries. Thetable 500 also defines fields for each of the entries 502, 504, 506 and508. The fields specify (i) a merchant identifier 520 that uniquelyidentifies the merchant, (ii) a merchant name 522, (iii) a merchantaccount identifier 524 that identifies an account which may be used totransfer funds to or receive funds from the merchant, and (iv) an amountof funds owed 526 to the merchant by the subscription fulfillment house.As described below, in one embodiment such funds owed may be due torebates that the merchant will provide on behalf of the subscriptionfulfillment house.

Referring to FIG. 6, a table 600 represents an embodiment of the rebaterule database 324 (FIG. 3). The table 600 includes entries 602, 604, 606and 608, each defining a rebate rule that specifies when a rebate is tobe offered to a customer. As described below, rebates are offered viaPOS terminals that are (directly or indirectly) in communication withthe subscription fulfillment house server 130 (FIG. 1). Those skilled inthe art will understand that the table 600 may include any number ofentries. The table 600 also defines fields for each of the entries 602,604, 606 and 608. The fields specify (i) a rebate rule identifier 620that uniquely identifies the rebate rule; (ii) an item identifier 622that identifies an item which, when purchased, triggers an offer for arebate; (iii) a rebate amount 624 that defines an amount of money to bepaid to the customer if the customer subscribes to a specifiedperiodical; (iv) a required subscription 626 that defines, for example,the required periodical and subscription term necessary to receive therebate amount; (v) a rebate message 628 that the POS terminal outputswhen a rebate is to be offered; and (vi) a contact identifier 630 thatspecifies a telephone number, email address and/or Uniform ResourceLocator (URL) which the customer may use to purchase a subscription tothe specified periodical.

Referring to FIG. 7, a table 700 represents an embodiment of the codedatabase 326 (FIG. 3). The table 700 includes entries 702, 704, 706 and708, each defining a code that may be provided with an offer for arebate to a customer and in turn redeemed by the customer when thecustomer subsequently purchases a subscription to a periodical. Thoseskilled in the art will understand that the table 700 may include anynumber of entries. The table 700 also defines fields for each of theentries 702, 704, 706 and 708. The fields specify (i) a code identifier720 that uniquely identifies the code, (ii) an indication of whether thecode has been issued 722 (i.e. whether the code is associated with anoffer for a rebate) and if so when, (iii) an expiration date 724 thatdefines a time period after which the offer for the rebate is no longervalid, (iv) an indication of whether the code has been redeemed 726(i.e. whether the rebate has been provided to the customer) and if sowhen, (v) an issuing merchant 728, (vi) a rebate rule identifier 730that identifies the rebate rule that specified the rebate (if any)associated with the code, and (vii) a rebate amount 732. Other types ofinformation may be stored in the code database 326. For example, entriesof the code database 326 may specify the item purchased by the customerreceiving the offer for the rebate, a credit card number used to pay forthe item, the required periodical the customer must subscribe to inorder to redeem the code, and a customer identifier (e.g. credit cardnumber, frequent shopper number) that uniquely identifies the customer.

As described herein, when the customer purchases the item from theissuing merchant, the code is provided to the customer (e.g. the code isprinted on a receipt). Thereafter, the code may be redeemed inpurchasing a subscription to a periodical. In one embodiment, the codemay only be redeemed during a period of validity, such as between thedate of issue and the expiration date.

In the embodiment of the code database 326 illustrated in FIG. 7, eachentry defines a code that may or may not be issued. In such anembodiment, there may be a set of predetermined codes, and codes areissued as needed. For example, the entry 702 specifies a code that hasnot been issued, as indicated by the corresponding field 722.

In another embodiment codes need not be allocated from a set ofpredetermined codes. Codes may instead be generated as needed. In suchan embodiment, each entry of the code database 326 could define a codethat has been generated and that represents an offered rebate.

In still another embodiment, codes may be generated by encrypting atleast one datum. Data that are encrypted to generate the code mayinclude information that is represented in the code database of FIG. 7.In such an embodiment, it may not be necessary to have a code databasethat stores such data since the code itself would store the data. Forexample, the code database in such an embodiment may only store for eachcode an indication of whether the code has been redeemed.

In the embodiment of the code database 326 illustrated by FIG. 7, thecustomer received the rebate amount upon using the code in purchasing asubscription. In another embodiment described below, the customer mayreceive the rebate amount a significant time after the code is used inpurchasing a subscription. In such an embodiment, the code could beconsidered redeemed when the customer receives the rebate amount.

Referring to FIG. 8, a table 800 represents another embodiment of thecode database 326 (FIG. 3). In the illustrated embodiment, each ofentries 802, 804, 806 and 808 defines a code that may be provided withan offer for a rebate to a customer. Each code may be used in purchasinga subscription, and then the rebate amount is provided at a time that ispossibly well after the subscription is purchased. Those skilled in theart will understand that the table 800 may include any number ofentries. The table 800 also defines fields for each of the entries 802,804, 806 and 808. The fields specify (i) a code identifier 820 thatuniquely identifies the code, (ii) an indication of whether the code hasbeen issued 822 (i.e. whether the code is associated with an offer for arebate) and if so when, (iii) an expiration date 824 that defines a timeperiod after which the offer for the rebate is no longer valid, (iv) anindication of whether the required subscription was purchased 826 and ifso when, (v) an indication of whether the code has been redeemed 828(i.e. whether the rebate has been provided to the customer) and if sowhen, (vi) an issuing merchant 830, (vii) a rebate rule identifier 832that identifies the rebate rule that specified the rebate (if any)associated with the code, and (viii) a rebate amount 834.

Referring to FIG. 9, a coupon 900 that is printed in accordance with thepresent invention includes indicia 902 that represent a message, indicia904 that represent a code and indicia 906 in the form of a bar code. Thecoupon 900 may be printed on a receipt by a POS terminal in a mannerapparent to those skilled in the art. The message can generally describethe offer for a rebate in exchange for establishing a subscription to aperiodical. The message may provide information such as a contactidentifier and a required periodical. The bar code may represent, forexample, the code.

Referring to FIG. 10, a table 1000 represents charges and credits madeto an exemplary credit card account. The exemplary account is identifiedby credit card account number 1002. Entries 1004, 1006 and 1008 eachdefine a transaction (charge or credit) to the account. Those skilled inthe art will understand that the table 1000 may include any number ofentries. The table 1000 also defines fields for each of the entries1004, 1006 and 1008. The fields specify (i) a description 1020 of thetransaction, for example a merchant from which a purchase was made; (ii)a date 1022 of the transaction; and (iii) an amount 1024 of thetransaction.

The exemplary account represented by table 1000 illustrates a purchaseat “Merchant Q” of $22.89 (entry 1004), a subsequent subscription toNews Magazine for $12.95 (entry 1006), and a rebate of $3.50 which isthe issue price of an issue previously purchased at “Merchant Q” (entry1008).

The description of each transaction may be generated by the partyreceiving the credit card account number and processing the accounttransaction. For example, the subscription fulfillment house server 130may generate a textual description of the rebate amount, and thistextual description would be printed on a billing statement of thecredit card account. Thus, the customer would be better informed as tothe nature of the credit. Such a textual description of the rebateamount could include an indication of the periodical subscribed to, theitem that was previously purchased, and/or a merchant from which theitem was previously purchased.

Referring to FIG. 11, a flow chart 1100 illustrates an embodiment of amethod for facilitating the sale of a subscription to a periodical inaccordance with the present invention. A first stage 1102 of the methodoccurs at a POS terminal, e.g., in a retail store. A second stage 1104occurs subsequently and at a different location.

At the POS terminal, the customer purchases an issue of a periodical(step 1110). The customer is then provided with an offer for a rebate onthe issue in exchange for subscribing to the periodical (step 1112).Subsequently, the customer subscribes to the periodical (step 1114) andthe rebate is provided to the customer (step 1116).

Referring to FIG. 12, a flow chart 1200 illustrates an embodiment of amethod for providing an offer for a rebate on an item in exchange forsubscribing to a periodical. The illustrated method correspondsgenerally to steps 1110 and 1112 of FIG. 11.

The bar code of an item the customer desires to purchase is scanned(step 1202). Typically, the POS includes a bar code scanner thatoptically scans a bar code of the item, generates a signal thatindicates the item, and transmits the signal to the processor and/ordata storage device of the POS terminal. The POS terminal thenascertains whether the item is associated with an offer for a rebate(step 1204). The POS terminal may search a database (e.g. the rebaterule database 324) for a record (e.g. an entry such as the entry 602 ofFIG. 6) that corresponds to the item, and then ascertain from the recordwhether the item is associated with an offer for a rebate. For example,if there is no record in the database that corresponds to the item, thenthe item is not associated with an offer for a rebate. The POS terminalmay search either a database stored locally thereon, or a database of aremote device such as a store server or the subscription fulfillmenthouse server. Those skilled in the art will realize further ways toascertain whether the item is associated with an offer for a rebate.

In addition to ascertaining whether the item is associated with an offerfor a rebate, in one embodiment the POS terminal may further ascertainwhether any of a number of predetermined rules are satisfied. Forexample, rules may define time restrictions (e.g. must be early morning)or total purchase price restrictions (e.g. total price >$20.00). If therule or rules are satisfied, then the code may be generated as describedbelow.

If the item is associated with an offer for a rebate, then a code isgenerated (step 1206). In one embodiment, the code is generatedrandomly. For example, a code may comprise twenty randomly generateddigits or alphanumeric characters. In another embodiment, the code maybe selected from a plurality of predetermined codes. For example, thetable 700 represents an embodiment of the code database 326 in which aplurality of predetermined codes are either issued or not issued. Codesthat are not issued are free for selection.

In still another embodiment, the code may be generated by encrypting oneor more data. Then the data could be determined from the code withoutreference to the code database 326 (FIG. 3). For example, the POSterminal may encrypt an identifier that indicates the periodical, anitem price of the item, an account identifier, a merchant identifierthat identifies the merchant selling the item, a period of validity ofthe code, an item identifier that identifies the item, and/or a customeridentifier that identifies the customer. Several encryption techniquesknown to those skilled in the art such as a block cipher technique maybe used to encrypt data to form a code. Encryption techniques aredescribed in “Applied Cryptography: Protocols, Algorithms, and SourceCode in C”, by Bruce Schneier.

A message is generated based on the item (step 1208). In one embodiment,the message is selected from a plurality of predetermined messages. Forexample, the rebate rule database 324 includes entries that specify foreach rebate rule an item and a corresponding message. Purchase of theitem triggers a rebate rule and thus specifies a message.

A periodical is also selected based on the item (step 1210). In oneembodiment, the rebate rule database 324 includes entries that specifyfor each rebate rule an item and a corresponding required periodical.Purchase of the item triggers a rebate rule and thus specifies arequired periodical.

The POS terminal includes a printer that prints the code and the messageon a receipt or a coupon (step 1212). Alternatively, the POS terminalmay display the message, for example, on a video monitor. The code isassociated with the rebate (step 1214). In one embodiment, the code isassociated with the rebate by creating an appropriate entry in the codedatabase 326 that includes the code and information about the rebate.Thus, the rebate may be determined from the code.

At step 1216, it is determined whether there are more items to scan. Forexample, a cashier operating the POS terminal may press a “SUBTOTAL” orsimilar key to indicate that there are no more items. If there are moreitems, then the bar code of the next item is scanned (step 1202). Ifthere are not any more items, then the customer is charged for the priceof the item(s). The customer typically pays by using cash, a check or acredit card account.

Referring to FIG. 13, a diagram 1300 schematically illustrates a methodfor generating a code by encrypting various data. Those skilled in theart will understand various ways to implement an encryption module 1302in hardware and/or software. The encryption module 1302 encrypts aperiodical identifier 1304, an item price 1306, a validity period 1308and a merchant identifier 1310 to generate a code 1320.

Referring to FIG. 14, a flow chart 1400 illustrates an embodiment of amethod for establishing a subscription and obtaining a rebate. Theillustrated method corresponds generally to the step 1114 of FIG. 11.

A request for a subscription to a periodical is received (step 1402).For example, the customer may use a telephone to access an interactivevoice response unit (IVRU) that processes the request. Such an IVRU maybe controlled by the subscription fulfillment house server 130 (FIG. 1).The customer may also communicate with an operator who in turn entersthe request into a terminal that is in communication with thesubscription fulfillment house server 130. Alternatively, the requestmay be received via a web server that receives requests via theInternet. Such a web server may interact with customers via electronicmail or via a form on a web site that is controlled by the web server.

A code is also received in conjunction with the request (step 1404). Thecode may be entered in the same way as the request. For example, in anIVRU embodiment, the IVRU may prompt the customer to enter the code byusing the buttons of his telephone. In such an embodiment, actuating thebuttons of the telephone would cause dual tone multi-frequency (DTMF)signals to be generated and transmitted to the IVRU.

In still another embodiment, the code and the request may be receivedvia postal mail. For example, a receipt may have printed thereon a formfor requesting a subscription to a periodical, as well as the code. Sucha receipt could be printed during the transaction in which the issue ofthe periodical was purchased. The code or indicia on the receipt couldindicate a means of payment (e.g. a credit card number). Alternatively,a check could be mailed in with the receipt.

The subscription fulfillment house server 130 then ascertains whetherthe code is valid (step 1406). In one embodiment, ascertaining whetherthe code is valid comprises searching for the code in the code database326 to determine whether the code has been issued. It can also bedesirable to ascertain whether the code corresponds to the periodical.If the code corresponds to another periodical, then the instant requestfor a subscription does not fulfill the requirements of the code. Thecode database can likewise indicate a required periodical thatcorresponds to the code. For example, the entry 706 (FIG. 7) indicatesthat the rebate rule “R01” corresponds to the code “123456789”. Therebate rule “R01” in turn corresponds to the required subscription “NewsMagazine for at least a twelve month term”, as indicated by the entry602.

Ascertaining whether the code is valid may also comprise ascertainingwhether the code is at least one of a set of predetermined codes. Forexample, the code database 326 may be searched to determine if the codeis specified by any entry thereof. In another embodiment, the code maybe evaluated to ascertain whether the code has certain features. Forexample, only codes that include seventeen digits and are divisible by acertain number are valid.

Ascertaining whether the code is valid may also comprise ascertaining aperiod of validity of the code, and ascertaining whether the period ofvalidity has elapsed. For example, the code database 326 may be searchedto determine an expiration date of the code. The expiration date wouldindicate an end of the period of validity. The period of validity wouldbe elapsed if the current date were after the expiration date. Thecurrent date may be maintained by the processor of the POS terminaland/or the processor of the subscription fulfillment house server.

Ascertaining whether the code is valid may also comprise decrypting thecode using any of a number of known decryption techniques described,e.g., in “Applied Cryptography: Protocols, Algorithms, and Source Codein C”, by Bruce Schneier. By decrypting the code, various types ofinformation may be ascertained from the code. For example, decryptingthe code can yield the periodical, an item price of at least one item,an account, a merchant identifier that identifies a merchant, a periodof validity, an item identifier that identifies the at least one item,and/or a customer identifier that identifies a customer.

If the code is valid, a rebate amount is ascertained from the code (step1408). The rebate amount may be ascertained by decrypting the code, asdescribed above. Alternatively, the code may correspond to a rebateamount in the code database 326. For example, the entry 708 of FIG. 7indicates that the code “836319910” corresponds to a rebate amount of$6.75. The rebate amount is credited to an account (step 1410) such as acredit card account that is indicated by a credit card number providedby the customer.

A subscription to the periodical is established for the customer (step1412) in a manner known in the art. Thus, the customer will be mailedissues periodically. The subscription price is likewise charged to theaccount (step 1414).

Referring to FIG. 15, a flow chart 1500 illustrates an embodiment of amethod for establishing a subscription and establishing a rebate to beprovided by a merchant. The flow chart 1500 is generally similar to theflow chart 1400. Rather than crediting the rebate amount to thecustomer's account, however, the rebate will be applied to a customeraccount by the merchant at a later time.

As described above, a request for a subscription to a periodical isreceived (step 1502) form a customer, and a code is also received inconjunction with the request (step 1504). A subscription to theperiodical is established for the customer (step 1506) in a manner knownin the art. The subscription price is likewise charged to an account(step 1508) such as a credit card account.

If it is ascertained at step 1510 that the code is valid, then thesubscription fulfillment house server 130 (FIG. 1) establishes a rebateamount for which a merchant is to credit the customer (step 1512).Establishing the rebate amount may comprise making an appropriate entryin a database such as the code database. For example, referring again toFIG. 8, the entry 806 defines a code “998877665” that was used at 11:23AM on Aug. 21, 2001 in conjunction with the request and purchase of asubscription. This code also defines a rebate amount of $6.75 that is tobe credited to the customer when the code is redeemed at a merchant“M001”. When the code is redeemed (e.g. during a subsequent purchase),then the price charged for the subsequent purchase is reduced by therebate amount of $6.75.

Referring to FIG. 16, a flow chart 1600 illustrates an embodiment of amethod for providing a rebate at a point of sale terminal of themerchant. The customer is identified at the point of sale (step 1602) inany of a number of ways. For example, the POS terminal may read afrequent shopper card or credit card of the customer. From the card, thePOS terminal may determine a customer identifier such as a frequentshopper identifier or credit card number that uniquely identifies thecustomer.

In another embodiment, the customer may be identified by reading acoupon or receipt provided by the customer. The coupon may includeindicia representing the code. For example, a bar code registered on thecoupon may be read by a bar code scanner, which transmits a signal thatrepresents the code to the POS terminal processor. As described above,such a coupon may have been provided to the customer when the customerpurchased an item that triggered the rebate offer.

The POS terminal then ascertains a rebate amount to credit to thecustomer (step 1604). The rebate amount may be ascertained from thecode, if any code is provided. As described above with reference to step1512, the code database may indicate a rebate amount for each code. Therebate amount may also be associated with the customer identifier. Forexample, there may be a customer database, similar to the code databasedescribed above, which stores rebate amounts corresponding to eachcustomer. From the database, it may be determined whether a subscriptionwas established for the customer.

The price charged to the customer is then reduced by the rebate amount(step 1606). For example, if the customer purchases items that normallycost $14.00 and the rebate amount is $6.75, then the price charged isreduced to $7.25 ($14.00−$6.75=$7.25). The reduced price may be chargedto an account of the customer (e.g. a credit card account).Alternatively, the price charged may reflect the combination of a $14.00charge to the account and a $6.75 credit to the account. In anotherembodiment, the customer may pay the reduced price in other ways besidesa using credit card account. For example, the customer may pay with cashor a check as is known to those skilled in the art.

Although the present invention has been described with respect to apreferred embodiment thereof, those skilled in the art will note thatvarious substitutions may be made to those embodiments described hereinwithout departing from the spirit and scope of the present invention.For example, the rebate amount need not be the price of thepreviously-purchased issue. In one embodiment the rebate amount may bebased on the price of a plurality of issues. A parent case of thepresent application, patent application Ser. No. 09/136,147, entitled“METHOD AND APPARATUS FOR ESTABLISHING A SUBSCRIPTION TO A PERIODICAL”,filed Aug. 18, 1998 and now abandoned, describes a method and apparatusfor providing free issues that may be incorporated with the presentinvention to provide free issues in exchange for establishing asubscription to a periodical.

1. A non-transitory computer readable medium storing instructions fordirecting a computer to: receive a signal indicative of at least oneitem being purchased by a customer at a point of sale terminal;determine that the at least one item is associated with an offer for anamount in exchange for establishing a subscription to a periodical,wherein the subscription to the periodical is different from the item;and provide the offer to the customer.